Tallebung Deposit Expansion Raises Questions on Resource Scale and Economics
Sky Metals has reported a significant discovery of shallow, high-grade silver-tin mineralisation extending the Tallebung deposit in New South Wales, highlighting promising potential for resource growth.
- New high-grade silver-tin intercepts expand Tallebung deposit southeast
- Notable drill result – 3m at 644g/t silver and 0.96% tin from 24m depth
- Deposit remains open in all directions with ongoing drilling
- Results support potential for low-cost open-pit tin, tungsten, and silver production
- Further assay results and drilling updates expected in coming months
Expanding the Tallebung Footprint
Sky Metals Limited (ASX – SKY) has announced a breakthrough in its exploration program at the Tallebung Tin Project in central New South Wales, revealing a new zone of shallow, high-grade silver-tin mineralisation. The latest Reverse Circulation (RC) drilling results include an exceptional intercept of 3 metres grading 644 grams per tonne silver and 0.96% tin from just 24 metres depth, marking one of the highest silver grades recorded at the project to date.
This discovery on the south-eastern margin of the existing deposit not only extends the known mineralised footprint but also underscores the emerging silver potential alongside tin, a combination that could enhance the project's economic profile significantly.
High-Grade Intercepts and Resource Potential
Additional drill holes have returned encouraging results, such as 10 metres at 191 grams per tonne silver and 0.14% tin, and broad tin zones including 40 metres at 0.24% tin with higher-grade intervals within. These findings demonstrate continuity of mineralisation beyond previously defined resource boundaries, suggesting the deposit remains open and ripe for further expansion.
Sky Metals’ Managing Director Oliver Davies highlighted the significance of these results, drawing parallels to renowned tin-silver belts globally, such as Bolivia’s Potosí deposit. He emphasized that the new silver-rich zones could add valuable by-product credits, improving project economics and supporting the case for a low-cost, open-pit mining operation.
Ongoing Drilling and Future Outlook
The company has completed 56 of 117 drill holes with assays received, and plans to drill an additional 41 holes shortly, aiming to infill and extend the Mineral Resource Estimate (MRE). The Tallebung deposit remains open in all directions, with particular focus on shallow extensions that could be mined economically.
Sky Metals is leveraging advanced metallurgical processes, including ore sorting and gravity separation, to enhance tin recovery and concentrate quality. The combination of high-grade intercepts, shallow mineralisation, and metallurgical simplicity positions Tallebung as a promising near-term development project in the tin and silver space.
Strategic Importance and Market Context
Tin is a critical metal for electronics, semiconductors, and renewable energy technologies, and supply security is increasingly important. Tallebung’s location in a stable jurisdiction and its historical mining legacy add to its appeal. The discovery of high-grade silver alongside tin could further diversify revenue streams and attract investor interest.
Sky Metals plans to continue releasing assay results regularly as drilling progresses, with investor presentations scheduled to provide further insights into exploration advances and project development plans.
Bottom Line?
As Sky Metals pushes the boundaries of the Tallebung deposit, the next phase of drilling could redefine its scale and value in the global tin-silver market.
Questions in the middle?
- How will the new silver-rich zones impact the upcoming Mineral Resource Estimate?
- What are the implications for project economics given the high-grade silver by-product potential?
- Could further drilling reveal deeper or lateral extensions beyond current targets?
